There are many different types of jobs in the world which can help you to lead your life. But when it comes to financial freedom all the peoples look for such an opportunity which will allow them to earn a decent income. By the word decent we are referring to sufficient that means we will have enough money even after full filling all our daily needs. Nowadays lots of people are investing in forex in order to secure their financial freedom. Forex trading is not an easy task, it requires a solid trading foundation and a clear understanding of the financial market. Like any other business trading, the forex requires an extreme level of discipline and proper execution of the trading plan. Most of the retail traders in this industry fail to earn money from the forex industry since they consider it as a money making the machine. They want to get rich over the night by trading the financial instrument. But in order to make a decent amount of profit you need to consider forex as a business. In this article, we will briefly discuss how many is made in the forex industry and what are the things we trade in the forex market. To be precise we will give a general overview of the forex market.
What is traded in forex?
The answer is pretty simple. Different currency pairs and financial assets are traded in the forex market. If you are new then you might be wondering what the word currency pairs means? In the forex market, we trade one currency in contrast to another currency. For instance, let’s consider the EURUSD pair. As a forex trader, you will buy or sell the pair at a specific price in order to make a profit. Let’s say that your broker is offering a bid price for the EURUSD pair at a rate of 1.06525.This means that when you will buy this pair for one EURO you will be getting 1.06525.So if the EURUSD pair rally upward you will be making money by trading the forex. Sounds confusing? Don’t worry! We will make it crystal clear to you. If you long (Buy) order in the EURUSD pair at a price 1.06525 then you will be getting 1.06525 dollars for one EURO. After four hours you see that the price of EURO strongly rallied up and the current bid price is 1.07525.So, this is the time when you make a profit. Previously for one EURO you were getting 1.06525 dollars and now for the same investment, you are getting 1.07525 dollars!
How I will buy or sell certain the financial instrument in the market?
This is one of the most crucial things that every trader needs to know properly. In order to buy or sell certain financial assets in the market, the trader needs a trading platform. A trading platform is such an environment which allows the trader to do their technical analysis and provides them the best possible trade execution features. The most popular trading platform now days are the Meta trader, trader, and ninja traders. Out of this trading platform there are many other expensive paid trading platform but if you truly know how to trade the forex market then the free trading platform is enough for you. In the eyes of professional trader, the Metatrader 4 is considered to be most efficient and reliable trading platform in this sector. So basically you need to predict the market and trade accordingly to make a consistent profit.
What drives the price in the market?
This is a million dollar question in the forex market and surprisingly many traders fails to answer this question properly. Currencies are traded in pairs that mean you are betting against two leading economies in the global market. For instance, if you trade the Great Britain Pound against the mighty dollar then you are basically trading the GBPUSD pair. During the release of the fundamental news in the market, the movement in the pair increases in other words volatility increases. So if the GDP news comes extremely positive then as a trader you can expect a rise in the GBPUSD pair. All the fundamental factors act as the price driving catalyst in the financial market. As professional traders, you must know the major economic news release in the market and sensitivity of their impact. Fundamental factors are very important in forex trading since it has long lasting impacts in the market and the long-term trend traders make their best profit based on the major fundamental news releases.
How do I learn the art forex trading?
Forex trading is such a complex business structure that you can never master the art by reading books only. If you truly want to become a successful trader then you have a clear understanding of the fundamental and technical analysis of the forex market. If you are a new trader then go through all the valuable online resources that you have in front of you. If you are lucky then you might get a successful trader. If you get one study him and try to find out how he deals with the market and what are the factors allows him to make profit consistently. There is no short cut way to becoming successful a successful trader. If you are truly committed and devoted to learning the art of forex trading then you must spend quality times in your learning period. Don’t skip any single subject that you don’t understand. Make sure you clearly knows the associated risk in forex trading. First of all, create a demo account and practice hard unless you find a valid trading strategy. Make sure you develop a valid trading strategy before you go live in the market.